Buyout

A buyout is defined as the purchase of a company or a controlling interest of a corporation’s shares, product line or business. A leveraged buyout is accomplished with borrowed money or by issuing more stock.9

Blind Pool

A blind pool is a form of limited partnership which doesn’t specify what investment opportunities the general partner plans to pursue.9

Anti Dilution Provisions

Anti Dilution Provisions are contractual measures that allow investors to keep a constant share of a firm’s equity in light of subsequent equity issues. These may give investors preemptive rights to purchase new stock at the offering price. Examples include Broad-Based Weighted Average Ratchet, Narrow-Based Weighted Average Ratchet, and Full Ratchet Anti Dilution.9

Annex Fund

Annex funds are side funds that can provide an extra pool of money to supplement the original VC Funds.9

Adventure Capitalist

An adventure capitalist is an entrepreneur who helps other entrepreneurs financially and often plays an active role in the company’s operations such as by occupying a seat on the board of directors, etc.9

Add-on Service

Add-on Services are the services provided by a venture capitalist that are not monetary in nature, such as helping to assemble a management team and helping to prepare the company for an IPO.9

Double Dip

Participating preferred stock which entitles a holder to a liquidation preference and also to participate in the residual value.9

Articles of Incorporation

Documentation filed with the Secretary of State or Company Registrar which acts as a charter to document the establishment and existence of a corporation. The articles typically include the businesses name, address, a statement of business purpose, and details related to the types of stock the corporation is entitled to issue.6

Invention Assignment Agreement

An agreement under which founders, employees, contractors, developers and others assign intellectual property rights to a company. Typically, these stakeholders or related parties of the company acknowledge that any and all intellectual property developed by them while working for or with the company, whether individually or jointly with other stakeholders, are the property of the company, not the individual. It can also apply to intellectual property that founders and others may contribute to a startup company at the time of its establishment.6